Tax Enquiries for Clients - Why Use Us?
There is a view that dealing with tax enquiries is just about being a good tax adviser. Whilst this is important, in many cases the enquiry may have as much to do with investigation, interpretation and tactics as it is about knowing the tax legislation. Tax inspectors are trained in investigation and interview techniques early in their careers, and they put this training into practice every day.
So if you are faced with an HMRC enquiry, who should you turn to for help?
Local accountants?
Local accountants may be good at preparing accounts, and complying with the tax legislation, but they may not have the investigation techniques of HMRC staff . They are also unlikely to have the time, or resource, to keep up to date with the many rules HMRC must operate within when conducting enquiries. They may only deal with a few enquiries each year, and are therefore unlikely to have the depth of training, knowledge or experience gained by dealing with enquiry work on a day to day basis. Most will have no ex HMRC staff – or if they do, the staff are unlikely to have had full HMRC inspectors training.
Large accountancy practices?
Large firms, found generally in large cities often have specialist teams dealing with tax enquiries . There is no disputing that some of them are very good at what they do. Their quality comes from two factors. First, they have day to day experience of working enquiries. Secondly, and more importantly, a large proportion of the senior staff are ex HMRC (and you’ll see this advertised on their websites). So what’s the down side? Well, generally it’s their fee level. Whilst they may get the results, the costs are likely to be very high.
Barrington House Solutions
We have more direct experience working investigations than most local accountants will gain in their careers and we also have strong tax technical knowledge . We know what the inspector will be looking for, how he or she will try and find it, and what questions will be coming next. By preparing for these questions, we can manage the enquiry, take the impetus away from HMRC, and ensure the matter is resolved as cost efficiently, and promptly as possible.
We also know the rules under which HMRC must operate, and when they are over-stepping the mark. A phrase often used in HMRC is “if you don’t ask, you don’t get” – and often information is requested informally which could not be requested under HMRCs formal powers. Some inspectors rely on this lack of knowledge of HMRC’s powers and rights to ask questions that you are not obliged to answer. Our teams experience within HMRC means that we know when the inspector is right – and when he is trying his luck!